If you’re a regular reader, you’ll know that jobless claims in the US have been tracking up to record levels since the COVID-19 pandemic led to a mass economic shutdown. Although President Donald Trump has been piling pressure on state governors to open up and get their people back to work, the unemployment numbers continue to rise.
The latest figures show historic levels of mass unemployment with more than 30 million Americans now out of work. This figure is the highest its ever been since the Great Depression of the 1930s – meaning almost a century has passed since an economic storm quite like the one we are currently living.
Data released Wednesday from the private sector suggested a total of 20.4 million jobs had been lost in the month of April alone. This follows 701,000 job losses in March. When the US Labor Department issues its own updated jobless claims report later Friday, the official number of 30 million is expected to increase by at least another 3 million people. Prior to COVID-10, the unemployment rate was consistently around 3.5%. To put this crisis into context, we’re now looking at 16.5% and climbing.
So, why does this mean now is a good time to buy? News of the rising job losses led to a selloff in gold Thursday, leading to prices around $1686 late Wednesday. This is the lowest we have seen in a while meaning now is a good time to take advantage and buy as we head into the weekend. Keep in mind that the precious metal has gained $235 in the last 12 months, so this is a real opportunity to add gold to your portfolio given multiple banks and financial institutions say we’re on track for over $2000 in the very near future